Omega Flex Q3 profit falls as material, new-product launch costs rise

By Reuters News


Overview

  • US flexible piping maker's Q3 net sales rose 6% yr/yr

  • Q3 net income fell 36% yr/yr, mainly due to higher raw material costs and marketing efforts

  • Company expects elevated costs to normalize over time


Outlook

  • Company expects higher costs to continue as it builds inventory and markets its new fitting

  • Omega Flex believes higher costs will be limited in duration and will normalize over time


Result Drivers

  • RAW MATERIAL AND INVENTORY COSTS - Co said higher raw material, inbound transportation, tariff and inventory procurement costs weighed on net income

  • MARKETING EXPENSES - Co said marketing efforts related to the launch of its re-engineered TracPipe fitting weighed on earnings

  • NEW PRODUCT LAUNCH - Introduction of re-engineered gas piping fitting led to higher procurement and marketing costs, per CEO Dean W. Rivest


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Basic EPS

$0.23


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For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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